(1) Rates may not be excessive, inadequate, or unfairly discriminatory.

(2) (a) Rates are not excessive if a reasonable degree of price competition exists at the consumer level with respect to the class of business to which they apply. In determining whether a reasonable degree of price competition exists, the commissioner shall consider: (i) relevant tests of workable competition pertaining to: (A) market structure; (B) market performance; and (C) market conduct; and (ii) the practical opportunities available to consumers in the market to: (A) acquire pricing and other consumer information; and (B) compare and obtain insurance from competing insurers. (b) The tests described in Subsection (2)(a) include: (i) the size and number of insurers actively engaged in the market and class of business; (ii) the market shares of insurers actively engaged in the market and changes in market shares; (iii) the existence of rate differentials in that class of business; (iv) ease of entry and latent competition of insurers capable of easy entry; (v) availability of consumer information concerning the product and sales outlets or other sales mechanisms; and (vi) efforts of insurers to provide consumer information. (c) If reasonable price competition does not exist, rates are excessive if: (i) rates are likely to produce a long-term profit that is unreasonably high in relation to the riskiness of the class of business; or (ii) expenses are unreasonably high in relation to the services rendered.

(a) Rates are not excessive if a reasonable degree of price competition exists at the consumer level with respect to the class of business to which they apply. In determining whether a reasonable degree of price competition exists, the commissioner shall consider: (i) relevant tests of workable competition pertaining to: (A) market structure; (B) market performance; and (C) market conduct; and (ii) the practical opportunities available to consumers in the market to: (A) acquire pricing and other consumer information; and (B) compare and obtain insurance from competing insurers.

(i) relevant tests of workable competition pertaining to: (A) market structure; (B) market performance; and (C) market conduct; and

(A) market structure;

(B) market performance; and

(C) market conduct; and

(ii) the practical opportunities available to consumers in the market to: (A) acquire pricing and other consumer information; and (B) compare and obtain insurance from competing insurers.

(A) acquire pricing and other consumer information; and

(B) compare and obtain insurance from competing insurers.

(b) The tests described in Subsection (2)(a) include: (i) the size and number of insurers actively engaged in the market and class of business; (ii) the market shares of insurers actively engaged in the market and changes in market shares; (iii) the existence of rate differentials in that class of business; (iv) ease of entry and latent competition of insurers capable of easy entry; (v) availability of consumer information concerning the product and sales outlets or other sales mechanisms; and (vi) efforts of insurers to provide consumer information.

(i) the size and number of insurers actively engaged in the market and class of business;

(ii) the market shares of insurers actively engaged in the market and changes in market shares;

(iii) the existence of rate differentials in that class of business;

(iv) ease of entry and latent competition of insurers capable of easy entry;

(v) availability of consumer information concerning the product and sales outlets or other sales mechanisms; and

(vi) efforts of insurers to provide consumer information.

(c) If reasonable price competition does not exist, rates are excessive if: (i) rates are likely to produce a long-term profit that is unreasonably high in relation to the riskiness of the class of business; or (ii) expenses are unreasonably high in relation to the services rendered.

(i) rates are likely to produce a long-term profit that is unreasonably high in relation to the riskiness of the class of business; or

(ii) expenses are unreasonably high in relation to the services rendered.

(3) Rates are inadequate if: (a) they are clearly insufficient, when combined with the investment income attributable to them, to sustain the projected losses and expenses in the class of business to which they apply; and (b) the use of such rates has or, if continued, will have: (i) the effect of substantially lessening competition; or (ii) the tendency to create a monopoly in any market.

(a) they are clearly insufficient, when combined with the investment income attributable to them, to sustain the projected losses and expenses in the class of business to which they apply; and

(b) the use of such rates has or, if continued, will have: (i) the effect of substantially lessening competition; or (ii) the tendency to create a monopoly in any market.

(i) the effect of substantially lessening competition; or

(ii) the tendency to create a monopoly in any market.

(4) (a) A rate is unfairly discriminatory if price differentials fail to equitably reflect the differences in expected losses and expenses after allowing for practical limitations. (b) A rate is not unfairly discriminatory if it is averaged broadly among persons insured under a: (i) group, franchise, or blanket policy; or (ii) mass marketed plan.

(a) A rate is unfairly discriminatory if price differentials fail to equitably reflect the differences in expected losses and expenses after allowing for practical limitations.

(b) A rate is not unfairly discriminatory if it is averaged broadly among persons insured under a: (i) group, franchise, or blanket policy; or (ii) mass marketed plan.

(i) group, franchise, or blanket policy; or

(ii) mass marketed plan.